OECD GDP estimates higher than Polish ones, says FinMin

Koscinski stressed that the European Commission (EC) had not yet indicated that any fiscal consolidation was needed in Poland. Mateusz Marek/PAP

OECD estimates that put Polish GDP growth this year and next year over 5 percent are slightly higher than the government’s 4.9 percent, the Polish finance minister said on Friday.

The OECD figures, which put growth this year at 5.3 percent and next year at 5.2 percent, were published on Wednesday, and came out on the same day S&P Global Ratings put growth at 5.2 for 2021 and 5 percent next year.

"The OECD has projected that our economy will grow by over 5 percent this year and next year. We are forecasting that it will be 4.9 percent," Tadeusz Koscinski said on the TVP 1 television channel, as quoted by PAP.

He added that the Polish government expects a budget deficit at the end of 2021 despite a surplus of over PLN 50 billion (EUR 11 billion) after the first ten months of this year.

Koscinski stressed that the European Commission (EC) had not yet indicated that any fiscal consolidation was needed in Poland. "So we are going to use this opportunity by planning a budget deficit. How big it will be, time will tell," Koscinski added.

The finance minister explained that the expected deficit is not a sign of "troubles" in Polish public finances, but it is related to "creating a financial cushion" due to the possible effects of the Omicron variant.

Koscinski also noticed that high inflation in Poland, recorded at 7.7 percent in November, would be decreasing together with "an economic cooling down."